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Act for equals and more equals

What is in the draft zoning law? Several very material changes and several alleged facilities. It is a pity therefore, that some of the long-awaited procedural simplifications are exclusively for public projects

The new draft of the zoning law ("draft law") was submitted to Parliament by the Government in June 2002, and forms part of the "Enterprise, Development and Work" package of laws. The legislative process, although delayed, is now well advanced, and the law is likely to be voted on soon. Like the current law dated 7 July 1994, the draft law regulates both the urban planning process and the development of individual projects. The latter forms the main focus of this article.
The draft law introduces two different regimes of planning permits to replace the current unique regime. There will be separate types of planning permits for:
- private investments (a decision on private investments will be referred to as "WZ"),
- public investments at a local (communal) and supra-local level (a decision on public investments will be referred to as "LICP").
The law will probably enter into force in spring 2003. "Old" master plans (i.e. those adopted before 1 January 1995) will remain in force until 31 December 2003, unless they have already expired. This may again turn out to be too short a period for gminas to vote through new master plans. "New" master plans (those adopted after 1 January 1995) will remain in force without any time limits.

Public vs. private
The draft law favours public investments over private ones. Public projects, even large scale ones such as national roads, can be developed without a master plan. This will not be possible in the case of retail schemes of more than 2,000 sqm. In terms of procedure, obtaining and maintaining a LICP is much easier than for a WZ. The involvement of third parties and the possibility of appealing against a decision in public investment proceedings is more limited compared to private projects.
It is regrettable that some long-awaited simplifications only apply to public schemes. One might also wonder why such simplifications only concern the planning permit procedure, and not the even more complicated procedure of applying for a building permit.

New planning permit procedure
There will be some quite important changes to the planning permit procedure when the draft law comes into force.
WZs will be issued exclusively for sites not covered by master plans or covered by old ones. However, the lack of a master plan may lead to the WZ procedure being suspended until a new plan has been voted on, but for not more than 12 months. It is an unfortunate solution that may delay many new projects, especially after the expiry of old master plans on 31 December 2003. The current law is more reasonable in this respect - it only allows the WZ procedure to be suspended if the master plan is already being elaborated. Both the current and the new law contain a serious defect: they do not specify objective reasons for suspending proceedings. This means that the authority may issue a WZ for one developer and suspend another's procedure.

Apparent facilities
Planning permits for new projects will not be issued on sites covered by new master plans - the developers will apply directly for a building permit. One might consider this a nice simplification, but this will not always be the case. A much better idea would be to make obtaining a WZ on such sites optional, which would enable, and not force, the developer to leapfrog the planning permit procedure. The WZ phase would probably not be skipped in large-scale investments where the costs of designs and other studies would not be incurred at risk, and also because of the lenders' requirements. In smaller schemes, however, the planning permit phase could be omitted without much harm. It is difficult to understand the reasons behind the inflexibility of the draft law.
Paradoxically, a WZ will be necessary for reconstruction or a change in use of the building, even on sites covered by new master plans. In other words, a WZ will not be necessary to develop a new building, but will be required for the reconstruction of an existing one. For the sake of consistency, it would be much better to continue with the current regime of "change in use" permits granted under the construction law.
The permitting authority will have to check the physical and legal status of the site. This seems pointless as the basic rule says that a planning permit must be issued if the projected investment complies with the master plan, independently of any property issues.
A new obstacle in obtaining a WZ will be met if certain infrastructural elements (electricity, water, gas etc.) are not available on the site. In such a case, the applicant must undertake to implement the necessary connections in an agreement with the relevant body, prior to filing for a WZ, which is at a very early stage. Needless to say, the negotiations will not only be a good opportunity for the body to obtain other "voluntary" undertakings from the developer, but will inevitably be time-consuming as well. Moreover, direct access from the site to a public road must be secured prior to filing for a WZ.
In some cases, planning permits must obtain prior approval from certain specialised bodies (monuments surveyor, road authority etc.). The weakness of both the current and the new regime is the lack of the "silence means consent" rule. There does not seem to be any other way of enforcing timely co-operation from those authorities. A significant improvement in the new regime is that planning permits will now be transferable, just as building permits already are.

CONCLUSION
The draft law is supposed to facilitate the planning and development process, which is vital for the recovery of the property and construction market. Unfortunately, I cannot see this aim being achieved in all intended respects. In some respects the draft law could go further, in some others it actually went too far. z

Piotr Szafarz
Lawyer at CMS Cameron McKenna

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